USDJPY Analysis – August 21, 2010

USDJPY may be forming a cycle bottom at 84.72 level on daily chart. Key resistance is at the falling trend line, a clear break above the trend line resistance could confirm the cycle bottom, then the following upward movement could bring price to 87.00-88.00 area. Support is at 84.72, only break below this level could trigger another fall to 82.00 zone.

For long term analysis, USDJPY has formed a cycle top at 94.98 level on weekly chart. Drop to 80.00 is still possible after consolidation.